Overall Equipment Effectiveness

(OEE)
TOTAL QUALITY MANAGEMENT

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 Overall Equipment Effectiveness
(OEE)
Elements of OEE is the way to
OEE OEE Measure Effectiveness

Prime Cause of How to increase

Production Loss OEE Calculation OEE ?

Fundamental Concept
2 of plant Effectiveness
 Overall Equipment Effectiveness (OEE)

Overall equipment effectiveness (OEE) is a hierarchy of metrics to

evaluate how effectively a manufacturing operation is utilized.
In an ideal factory, equipment would operate 100 percent of the time at
100 percent capacity, with an output of 100 percent good quality.

The difference between the ideal and the actual situation is due to losses.
Calculating the overall equipment effectiveness (OEE) rate is a crucial
element of any serious commitment to reduce equipment- and process-
related wastes.

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 ELEMENTS OF OEE

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 OEE is the way to Measure Effectiveness
OEE is the way to measure how effectively Machine /
Equipment hours are used.
Total time
OEE goes down due to following Losses
e.g. 480 min. (1 shift)

Planned - breaks, planned

Available time Downtime maintenance, training

- breakdowns, repairs
Running time Downtime - changeover
- adjustment
- start up

- machine speed
Productive time Performance - short stoppages
Losses - lower yield

- scrap
Effective time Quality Losses - reject
- rework

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 Prime Cause of Production Loss

A production line seldom operates at optimum speed. A myriad of

reasons or Negative Performance Impacts, mostly in combination,
cause losses in productivity and therefore loss of money. These
include:
•Line Saturation
There is no place for more output from the machine. For example,
a filling machine of a bottling line is running at its max. speed.
•Equipment Failure
Machines break down, wear out, are not used properly and so on.
All ends up in lost production time.
•Product changes
During the change over from one product to another the machine
settings must be changed, breakdown may occur and speed must
6 be reduced.
 Prime Cause of Production Loss

•Short Stops
For example, a bottle falls down in a bottling machine and the
operator picks it up. These short but frequent events can be the
reason for major time loss.
•Operator Inefficiency
The operators like to have it nice and easy. They run with lower
speed in order to guarantee smooth operation.
•External reasons
Sometimes, the production runs out of orders and the machines
have to shut down. Or there can be a failure in the electrical
power network far away from the factory.

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 Prime Cause of Production Loss

•Product Type
Some products are more difficult to make. There are more
breakdowns and quality problems.
•Speed Losses
For one reason or another, the speed of the machine is not
optimum. In order to save costs, someone has purchased cheap
but poor quality raw material.
•Quality
Although the machine is running, the products are not good
enough for the customers. These are the most expensive kinds of
losses.
•Missing Material
The raw material storage is empty and machines can not produce
8 any more.
 OVERALL EFFECTIVENESS FORMULA

OEE = OVERALL EQUIPMENT EFFECTIVENESS

R.E. = RUNNING EFFICIENCY
P.P. = PRODUCTIVE PERFORMANCE
Q. = QUALITY

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Overall Equipment Effectiveness Calculation

Available time - Downtime

Running Efficiency =
Availability
OEE (in %) =
= 420 min - 80 min
420 min 80.95%

Productive Performance=
Running time - Performance loss X
Running time
340 min – 70 min
=
340 min
79.41%

Productive time - Quality loss time

Quality =
X
Productive time

= 270 min - 20 min 92.59%

270 min

Overall Equipment Effectiveness 59.52%

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 How to Improve OEE ?

Data collection is the most important action to increase OEE

Collect data for all downtimes Data analysis and Make improvements
and losses on the machine visible measure visible and implement

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Analysis
Repairs 30 Autonomous Mainten.
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20
Change over, Adjustm. 15 Preventive Maintenance
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5
Tool change Changeover reduction
Repair Changeover Tool change Scrap Minor Stopp.

Minor stoppages 33 26 16 7 3
Standardize tooling
Scrap, rework OEE Trend Improved machine
Target 2003 reliability

Standardisation

J F M A M J J A S O N D

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Fundamental Concept of Plant Effectiveness

16 Kinds of loss

8 availability losses 5 productivity losses 3 production/ cost losses

– not part of OEE -
Machine Failure Management losses

Motion Loss of energy

Set up & adjustments

Line organization Die, Jig and tool losses

Tool changes

Start-up losses Logistics Yield losses

Minor stoppages Adjustments

Speed Losses

Defects and Rework

Shutdown

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 THANK YOU! 

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